My answer to What is the effect of high military spending on American people?
Answer by Ken Larson:
How much longer can we afford to be the "World's Policeman"?
We are spending over $500 B per year for defense, homeland security and nation building. Investments we are making in developing new democracies are draining our domestic programs such as health care, stifling the education of our young people and limiting research and development in valuable commercial technologies.
The largest corporations selling to our government are no more than extensions of our government in the cloak of industry. They are not in the business of making money for the stockholder. They are in the business of spending money for the government. As a result they are some of the poorest growth stocks on Wall Street.
Recent consolidation in the Defense Industrial Complex has dramatically reduced competition. Only public laws mandating a twenty percent allocation of Federal Contract Funding to small business have kept diversification in the mix.
Even then, much of the moneys that flow to small business go through a select group of large business prime contractors who add their respective overhead and general administrative expense to the small business cost and pass it on to the government.
When we consider the largest evolving countries in the world today, such as China, India and others, we should note that they are successfully competing in a fast moving, complex world economy. These countries are not all pure democracies and probably never will be. No overt action on our part created these powerhouses.
As we struggle to compete with them we must have education, research and development and a healthy work force to keep pace. How much can we afford to spend forcing our capitalistic ideologies on other societies? Events have proven that the world has become a tightly wound place economically. Countries who wish to succeed and grow will play the game anyway.